Tuesday, February 10, 2009

Tuesday 02/10/09 - Buy the Rumor, Sell the News

Good news, my account is now open at Infinity Futures. I'll be funding it in the next day or so and should be ready to trade with real $ by Monday at the latest.

Now, to today's price action. Honestly, I wasn't all that surprised. I was expecting a sell-off into the news and posted about it in the Gap Tracker post this past Friday. I was talking to Matt in the morning and told him I would not consider going Long on a day like today, and that we could very well drop to the 818s. This is simply because I've learned my lesson and do not try to catch bottoms, especially on a day like today. The lesson cost me $700 (tuition) last year on Thursday, 11/20/2008, when the S&P dropped over 60 points in one day. Today felt a lot like that day, and although today was a bad day, I'm glad it's out of the way. Price broke down through several support levels, and I'm not anticipating a bounce. We might just chop around in a range againfor rest of the week. I'm looking for the 810-815 area to hold; 795-800 below that, and then we go to the November 08' lows (hope not). Having said all that, my goal is not to predict, but to react to what the charts tell me in real-time.

1 comment:

Wise words my man. Not to predict - but react. Thats like something I need posted above the screens.

You asked me if I would change anything on my blog? Honeslty... nope.

I was checking out at 1 min TF chart from today and there was the same setups but they would've netted around +7 points over the day... its just how they fell today. Maybe tomorrow the TF will be crap for me and the ES will be magic... I trade how I trade and it works how it works.

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Trading of securities, options and futures may not be suitable for everyone and involves the risk of losing part or all of your money. Commentaries are educational in nature and are designed to contribute to your general understanding of financial markets and technical analysis. Use it how you want and at your own risk. I am not a registered investment adviser. This information is a general publication that reflects my opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice. Controlling risk through the use of protective stops is essential.